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WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3723
Experience:  Senior Associate at White & Case LLP
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Im an Independent Distributor and purchased a bread route three

Resolved Question:

Im an Independent Distributor and purchased a bread route three years ago. I purchased the route for $111,000.00 and there buying it back for $91,000.00 (loss of $20,000.00). Our bakery (Holsum Bakery, owned by Flowers Foods) has decided to change our name to "flower foods of California". this voids our current contract. There changing our status to Statutory Employees, and cutting our commission (by 10%). Is this legal? What can we (independent distributors) do? Can they do this by law?
Submitted: 4 years ago.
Category: Business Law
Expert:  WiseOwl58 replied 4 years ago.
It doesn't sound legal to me. We would have to check the contract to see if they have any repurchase rights, but once you pay for the route, they do not have the right to retract it and buy it back from you, especially at a loss to you.

Furthermore, they have no right to cut your commission. It soulds like you should challenge all this. I suggest you demand your purchase price back $110, 000. Tell them you conferred with a lawyer, and if they don't give you a full payment of all of your money back, you plan to pursue your legal remedies.

I think they will pay the full price as they don't want to tangle with litigation.
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